Dividend Yield Calculator

Calculate a stock's dividend yield from its declared dividend per share and market price, and check whether TDS applies on your dividend income. Pick a live declared dividend to auto-fill the amount.

Dividend Yield

+3.00%

Dividend yield = dividend per share ÷ market price. Rises when the price falls (for an unchanged dividend) and vice versa — it is not a forward guarantee of future dividends.

Total Dividend Income

₹1,500

Dividend per Share

₹15

TDS on This Dividend

Not applicable

Total dividend income from this company is at or below the ₹10,000/FY threshold, so no TDS is deducted — though the dividend is still taxable income you must declare.

TDS threshold per Section 194/393(1) of the Income-tax Act was raised from ₹5,000 to ₹10,000 per financial year, effective 1 April 2025. Dividend income is fully taxable at your slab rate regardless of whether TDS was deducted.

How the Dividend Yield Calculator works

Dividend yield = dividend per share ÷ market price, expressed as a percentage. It moves inversely with price for an unchanged dividend — a falling stock price makes the yield look higher even though the company hasn't declared more, which is why a very high yield can sometimes signal market skepticism about whether the dividend is sustainable, rather than genuine value.

Dividend income is fully taxable at your income tax slab rate in India. The company deducts TDS at 10% (20% without PAN) on dividend payments only when your total dividend income from that company exceeds ₹10,000 in a financial year — this threshold was raised from ₹5,000, effective 1 April 2025. Whether or not TDS is deducted, you must still declare the full dividend amount as taxable income.

Disclaimer: This calculator is for educational purposes only and does not constitute investment advice. Always read the Red Herring Prospectus and verify current rates before applying for any IPO.

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Frequently Asked Questions

What is a good dividend yield?

There's no universal answer — it varies by sector and company maturity. Mature, cash-generative businesses (utilities, PSU banks) often yield 3-6%+, while growth companies typically yield little or nothing, reinvesting profits instead. Compare within the same sector, not against a fixed benchmark.

Is dividend income taxed differently from capital gains?

Yes — dividend income is taxed at your income tax slab rate as 'income from other sources', unlike capital gains on share sales which have their own STCG/LTCG rates. There's no separate exemption threshold for dividend tax the way LTCG has its ₹1.25 lakh exemption.

When does TDS apply on dividends?

TDS at 10% applies when your total dividend income from a single company exceeds ₹10,000 in a financial year (raised from ₹5,000, effective 1 April 2025). Without PAN furnished, the rate rises to 20%.

Does a high dividend yield mean the stock is a good buy?

Not necessarily — a spiking yield often results from a falling share price rather than a rising dividend, and can signal the market doubts the dividend is sustainable. This calculator shows yield mechanically; it isn't an investment recommendation.